One of the IPO-related anomalies that have been well-discussed in the finance literature is the IPO's long-running underperformance. Two of the major explanations of that phenomenon are: "Hot market" and earnings management. This study investigates the relative importance of these two...

Earnings management is a behaviour that is difficult to avoid because of the impact of accruals in preparing financial statements. Earnings management occurs due to information asymmetry in a company. One way to prevent information asymmetry from occurringso as to reduce earnings management is...